| T O P I C R E V I E W |
| hammy0107 |
Posted - 19 May 2008 : 09:45:39
I am very soon going to be petioning for voluntary BR and i keep reading about BRU & BRO. What is really worrying me is meeting with the OR and trying to explain where all the money went. Hand on heart i cannot remember, i know the intention when taking out loans was to consolidate other loans but the situation i am now in tells me it didn't work. I must of wasted the money as i am worse off than ever but where it went i really don't know. I have been paying into a DMP for 3 years and fully believe i have learned to live without borrowing, i have learned my lesson but i don't think it is going to look like that to the OR. If i can't tell him / her where the money went i am going to look like i am hiding something which i am not. I see BR as a new start but if i am going to get a BRO / BRU and it is for a long time then it doesn't seem like a fresh start really. I think i am going to be able to pay around £8 to £10k into the BR and if my I&E's are agreed i will probably have about £150 excess cash each month so i am trying to give them something back. I also had an lump sum IVA rejected where they would have received 25p in the pound. Do you think the fact i am trying to pay them something will go in my favour and possibly counteract the fact i have been stupid with money for a few years? I really don't want a BRO /BRU. Thoughts please. |
| 15 L A T E S T R E P L I E S (Newest First) |
| m and v |
Posted - 20 May 2008 : 22:59:48
They just seem to have unrealistic expectations for people in debt and obviously struggling.
I could really get into this line of work. I can understand now why you and the other experts on this forum feel so strongly about helping others through BR.
Vicki x |
| Helpful Advice |
Posted - 20 May 2008 : 22:52:37
Hi Vicki,
It depend on the creditor, however they certainly prefer debt management to IVA's as a debt management plan will remain on the banks balance sheet showing as a profit whereas Bankruptcy and IVA's are formal insolvency therefore they have to right the debt off.
My feeling is the banks are rejecting IVA's so that more and more people fall back to Debt Management rather than Bankruptcy and if the figures for debt management were made public you would more than likely see it is the case that more will opt for a DMP rather than Bankruptcy.
If the DMP remains on the banks balance sheet then they can use this to borrow more money.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
| m and v |
Posted - 20 May 2008 : 22:46:02
Brett - do creditors get paid out by insurance when their debtors default? What I mean is - are they not bothered if they get paid back by us, is IVA an inconvenience and BR an easier option for them?
Vicki x |
| Helpful Advice |
Posted - 20 May 2008 : 22:39:26
I have seen some daft decisions made by creditors over the last ten months, however I truly believe the banks and financial institutions are cutting off their noses and think they will certainly have to review their decision making with regard to IVA's as the Bankruptcy numbers grow and IVA numbers fall more from their stupidity then anything else.
Being a Bankruptcy specialist my business is growing because of their decision making, however it saddens me that I see people who don’t want to go Bankrupt, they want to contribute towards their debts and see the IVA as the right vehicle to do so only to be rejected
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
| m and v |
Posted - 20 May 2008 : 21:23:44
Join the club Hammy! My creditors declined a lump sum of £25k against £63k of debt.
Now I am BR and they will get nothing - not a penny!
Vicki x |
| hammy0107 |
Posted - 20 May 2008 : 21:05:56
Thank you Melanie |
| melanie_giles |
Posted - 20 May 2008 : 20:17:22
I think that Hammy makes his point rather well - and is merely suffering from events which affect my profession every single day. I just wish that the stand that he is preparing to take would alter this process in some miniscule way, but sadly the creditors will take not one bit of notice, and another good honest person is forced to the bankrutpcy court.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| JulianDonnelly |
Posted - 20 May 2008 : 17:02:28
It depends which firm you go to some will charge an upfront fee where as others will draw their fee from the contributions if the IVA proceeds.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| m and v |
Posted - 20 May 2008 : 13:25:40
I didn't realise you had to pay just to have an IVA proposed!!! Is this right experts??
Vicki x |
| hammy0107 |
Posted - 20 May 2008 : 11:44:05
To be honest i have just paid out to an IP and got nowhere and don't really want to be risking more money i haven't got. Besides i am at the point where i just want to get my debt sorted one way or another. Also the company who rejected the IVA (representing 4 creditors) need to realise they cannot dictate how IVA's are implemented. I want these creditors to see that in BR they are now going to get minimal return and that is down to the idiots they are entrusting their best interest with. Maybe, just maybe if they keep losing out like they potentially will with me then less creditors will give business to this company. My proposal was to make a one off payment of £25k against £100k debt, even NR accepted this. The 25k was to be paid within 6 months. This company were insistant on me entering a 5 year IVA even though my surplus cash meant they would get roughly £15k over 5 years. Their gamble was that my property would have gone up in the region of 15 - 20% in the next 5 years. Absolute madness yet creditors are still allowing these idiots to look after their interests. I just wish their was a way of paying the 'decent' creditors and telling the others to get lost. |
| JulianDonnelly |
Posted - 20 May 2008 : 09:03:51
Hi Hammy,
As Brett points out there is nothing in the information you have given which suggests you would get an IPA/IPO, but as Melanie mentions the decision is ultimately down to the Trustee and the Court, therefore if this would effect your career as a Director then I would suggest another shot at the IVA, perhaps if you contact Melanie she can advice you on your options.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| melanie_giles |
Posted - 19 May 2008 : 21:21:36
Have you thought about representing the IVA with another firm? Just a thought.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| m and v |
Posted - 19 May 2008 : 17:36:03
Yes I struggle to understand why they reject an IVA knowing full well that your only other route is BR. Maybe your creditors get paid out by their own insurance cover and BR is an easier way for them than IVA? Or they feel it is a bigger rap on the knuckles than an IVA!!
Vicki x |
| hammy0107 |
Posted - 19 May 2008 : 16:31:17
I have a small shareholding. I am currently getting my shares valued professionally, i will then sell my shares to my co directors and put the proceeds towards the BR. This is what is so frustrating about the lump sum IVA being rejected. With me performing the duties of a director my shares are worth more than if i am not directing the business. In IVA my ceditors would have got 25p / £1, in BR they will probably get less than 10p / £1. Doesn't make sense to me but they are allegedly the experts. |
| Helpful Advice |
Posted - 19 May 2008 : 14:16:39
Hi Hammy,
Without knowing the full details of your case I could not really comment, but from what you have mentioned I can not see a clear example of bad conduct that would warrant a BRO/BRU.
You mention the directorship did you or have you any shares in the business?
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
